Tara Kubiak is the office administrator for the Department of Management at Provincial University. The faculty uses
Question:
Tara Kubiak is the office administrator for the Department of Management at Provincial University. The faculty uses a lot of printer paper and Tara is constantly reordering and frequently runs out. She orders the paper from the university central stores. Several faculty have determined that the lead time to receive an order is normally distributed, with a mean of two days and a standard deviation of 0.5 day. The faculty have also determined that daily demand for the paper is normally distributed, with a mean of 2.6 packages and a standard deviation of 0.8 pack-ages. What reorder point should Tara use in order not to run out 99% of the time?
Step by Step Answer:
Operations Management Creating Value Along the Supply Chain
ISBN: 978-1118301173
1st Canadian Edition
Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi